Raspberry Pi, the UK-based maker of affordable microcomputers, has reported stronger-than-expected profits in its first financial update since going public on the London Stock Exchange in June.
The company, which raised £178.9 million through its initial public offering and joined the FTSE 250, saw year-on-year sales jump 61% to $144 million in the six months to June 30, while pre-tax profit remained steady at £10.8 million.
The company’s shares surged by more than 10% on Tuesday, settling up 6.6% at 371¼p. Raspberry Pi sold 1.1 million units of its latest model, the Raspberry Pi 5, launched in October 2023, contributing significantly to its first-half performance, which surpassed internal expectations.
Despite the recovery from pandemic-induced supply chain disruptions, Raspberry Pi continues to experience some challenges, particularly with semiconductor supply. CEO Eben Upton explained that lingering demand imbalances, caused by over-ordering during shortages, are slowly correcting.
Analysts at Jefferies noted that while the second half might be slightly weaker due to ongoing inventory corrections and lower-value product sales, the outlook for 2025 remains positive, with favourable memory pricing and higher sales expected.
Originally founded as a charity in 2008 to encourage more young people to study computer science, Raspberry Pi became a commercial success, with the Raspberry Pi Foundation retaining a 47% stake after the float. The company has expanded its offerings, including new products focused on AI hardware, in partnership with Hailo AI, and its first cloud product, Raspberry Pi Connect, which allows remote device access for $6 per year.
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Raspberry Pi shares surge after strong first update since flotation